They have a low chance of success in court, and are a relatively expensive proposition for the plaintiff lawyers pursuing them. As such, the lawyers are happy t

They have a low chance of success in court, and are a relatively expensive proposition for the plaintiff lawyers pursuing them. As such, the lawyers are happy to take a generous (to them) settlement before the case gets too far. On the opposite side, it helps the company avoid expensive discoveries, low-probability but possibly very expensive judgements, and gets rid of the need to keep investors informed about nuisance suits.